FanDuel discussing sale to Irish sportsbook Paddy Power: report
Ireland-based sportsbook Paddy Power Betfair is reportedly close to acquiring daily fantasy sports company FanDuel one day after the U.S. Supreme Court overturned a federal ban on sports gambling.
At present, it is unclear how much Paddy Power Betfair would pay to acquire FanDuel or when a deal could be reached, according to Legal Sports Report, which first reported the negotiations. The price is said to be below the $1 billion valuation FanDuel achieved in 2015.
Representatives of Paddy Power Betfair and FanDuel declined to comment on the report.
FanDuel says it has a base of more than 6 million registered users. The company, which has drawn regulatory scrutiny in recent years on concern that its fantasy sports contests are a form of betting, has expressed interested in entering the legal gambling marketplace in states that permit the pastime.
The Supreme Court voted 6-3 in a ruling handed down Monday to repeal the Professional and Amateur Sports Protection Act, a 1992 provision that banned sports betting in all but four states. Each of the four major sports leagues – the NFL, MLB, NHL and NBA – reiterated their commitment to protecting their sports from corruption in light of the ruling. The NFL and NBA called on Congress to provide a regulatory framework for legal betting on the federal level.
FanDuel praised the Supreme Court’s decision in a statement.
“This decision allows us to bring the passion and engagement we have seen among our users to new and expanded marketplaces and create a sports betting product that fans will love,” the company said.